A look at the Fremont Housing Market and Lifestyle in Summer 2018.

A look at the Fremont Housing Market and Lifestyle in Summer 2018.

MARKET PULSE

An overheated property market, traffic congestion and an influx of big business, appear to be the norm around Fremont these days and show no signs of reversing direction anytime soon.

For existing property owners this can be both a blessing and a curse. While owners do in fact watch their property values soar, which can undoubtedly be very exciting, many also experience difficulty getting around town, long lines at supermarkets, overcrowded schools and an ever-increasing cost of living.

Still the area holds a lot of attraction, as evidenced by the continuing strong demand for area real estate. The quality of education, proximity to major employers and international airports, high salaries, relatively mild weather patterns, and the growing focus on tight-knit communities, all make the Tri-City area a very desirable place to live.

Even with all of this however, opinions about the area are very much split. In fact, a recent poll cited by ABC7 News, indicated that a whopping 46% of Bay Area residents plan to leave the area for what they deem to be greener pastures within the next few years.

Based on what we’ve seen and heard to date, we expect trends in the Fremont housing market to continue in the short-term, largely on the trajectory they’ve been. There is a widely held assumption, that net migration to the Tri-City area, will continue to remain positive into the near future.

However, the winds of change are beginning to blow, as evidenced by a new report on the Southern California housing market. According to the National Association of Realtors, “the supply of homes for sale increased annually in June for the first time in 3 years”, but “sales fell for the third straight month.” There is typically a lag between the time sales start to fall, and a stagnation or drop in prices catches up to it. The decrease in sales may be attributable to a number of factors, including rising mortgage rates, housing affordability, the ongoing trade war, global uncertainty, and a significant drop in investment from mainland Chinese investors, following China’s recent tightening of restrictions on the outflow of capital.

There are also some big changes coming to the area, you should be aware of. For one, developers continue to build new housing wherever they can find suitable land for building. The focus is predominantly on luxury town-home developments and multi-family over retail centers. Some of the largest projects are taking place in the South Fremont redevelopment area surrounding Tesla and the new Warm Springs BART station, Centerville near the intersection of Fremont Blvd and Thorton Avenue, Downtown near the intersection of Mowry Avenue and Fremont Blvd., Irvington at the intersection of Grimmer and Fremont Boulevards, and within the city of Newark in close proximity to the Dumbarton Bridge. Although there is a boom in new construction, the current approved projects, are still not anticipated to be sufficient in meeting the continued demand for housing. Most obviously lacking is the creation of affordable housing opportunities, as luxury developments provide a higher return on investment for property builders and many in city government expect to attract large technology companies and their employees.

Just this past month, it was made public that one of largest technology companies in the Bay Area, Facebook, has recently leased a whopping 754,000sqft of office space in Fremont. This is an expansion on the existing 250,000+ sqft they already lease in the area. This will undoubtedly create a significant influx of technology professionals, filling new permanent job positions, and seeking accommodation in an already crowed Fremont housing market. In addition to creating increased pressure on housing supply, it will no doubt also create increased pressure on the public-school system, public transportation systems and crowded roadways.

Thankfully we know that Fremont is at least planning to add one new public school in the near future. That school will be located within the Warm Springs area. After a plan to build a new elementary school near the intersection of Fremont Boulevard and Decoto Road was scrapped by the City last September, this a welcome endeavor, although it is unlikely to provide any direct benefit to North Fremont residents. Fremont is already known to be in bad need of space for incoming students and FUSD is under a significant treat of it’s teachers striking.

On a more positive note, Fremont continues to add more entertainment and community recreation opportunities to the area. Included in these projects is the much-anticipated Town Fair Plaza, which will feature family friendly games, gourmet food trucks, mini-golf and a beer garden.

How do you feel about the changes coming to Fremont? What are your thoughts on the Fremont housing market? Have you heard any news about planned infrastructure projects to the area? We’d love to hear your opinions.

By Chris Jacquez
Realtor, Tax Accountant (EA)